American Property Casualty Insurance Association is Encouraged Policymakers Are Analyzing Problem Before Developing a Prospective Pandemic Solution

WASHINGTON, July 23 (TNSPol) -- The American Property Casualty Insurance Association issued the following statement on July 22, 2021:

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Robert Gordon, senior vice president of policy, research, and international for the American Property Casualty Insurance Association (APCIA) testified today at the Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investment hearing, "Examining Frameworks to Address Future Pandemic Risk." APCIA released the following statement:

"APCIA commends Chairman Menendez, Ranking Member Scott, and members of the Subcommittee for holding this important hearing to begin to understand the full extent of the economic impacts of pandemics and to explore solutions to provide economic protections against a future pandemic," said Gordon.

"The COVID-19 pandemic continues to cause unprecedented and devastating hardship on individuals, families, businesses, and communities across the globe. Pandemic losses have been far more extensive than any past catastrophic event, causing $23.5 trillion dollars in long-term losses.

"Global pandemics are uninsurable. Extensive analysis by APCIA determined that most pandemic economic losses were caused by a macro-economic plunge in consumer demand for in-person services, not by physical damage or government closures. Insurance has never covered shifting macroeconomic consumer demand and is not well-suited to do so. The economic hardships created by pandemics like COVID-19 must be addressed through government intervention.

"APCIA is encouraged that policymakers are taking the time to fully analyze, understand, identify, and articulate the problems to be solved in order to craft the most appropriate solution."

APCIA's testimony is attached.

The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.